BCC Completes Technical Due Diligence and Provides Update

MetalsTech Limited (MTC or the Company) provides the following update in respect of the $1.8 million funding deal (Investment) with leading chemical producer Wuxi Baichuan Chemical Industry Co Ltd (BCC).

The Company is pleased to advise that BCC has completed and is satisfied with its technical due diligence and has improved its investment offer through a variation to the binding agreement as announced 26 October 2017. The amendment to the agreement is in line with terms of MTC’s recent $3 million funding deal with leading battery manufacturer Dynavolt Renewable Energy Technology Co Ltd (Dynavolt), see ASX announcement 6 December 2017.

Highlights

•    BCC satisfied with technical due diligence investigations

•    BCC investment terms improved through replacement of the previously guaranteed project-level option with a requirement that BCC increases its share ownership to >12.5% through on-market and off-market share acquisitions to earn:

o    a right to participate in placements for 12 months to maintain ownership position
o    a right to match any project-level investment by a third party within 12 months up to 10% project-level interest

•    Investment remains subject to completion of the transfer of certain project tenements into MTC subsidiaries with transfers already underway

•    BCC afforded an extension of time to complete the Investment to within 20 business days of completion of the relevant tenement transfers

•    MTC believes the outstanding tenement transfers will be complete before the end of this month

•    MTC currently funded to commence further drilling at Cancet and Adina Lithium projects, with on-ground works commencing late January
Commenting on the strategic funding deal, Executive Chairman of MetalsTech, Mr Russell Moran stated:

“We are grateful for the hard work that Wuxi Baichuan has been applying towards facilitating what will be the first stage of a strategic relationship with our Company. The parties have agreed to amend the terms of the investment to provide incentives to Wuxi Baichuan for increasing its ownership position through on-market purchases in keeping with comparable incentives under our investment arrangement with Dynavolt. This as a win-win for all parties and we look forward to Wuxi Baichuan and Dynavolt supporting us in our development strategy.”

The full ASX announcement can be viewed by CLICKING HERE


Signed Strategic Deal With Lithium Battery Manufacturer

MetalsTech (MTC or the Company) is pleased to announce it has signed a binding agreement with Dynavolt Renewable Energy Technology Co Ltd, a wholly-owned subsidiary of Shenzhen Stock Exchange listed and world- leading battery manufacturer Guangdong Dynavolt Renewable Energy Technology Co Ltd (Dynavolt), to subscribe for 10 million shares through an escrowed placement at 30 cents per share (Cornerstone Placement).

Highlights

•    Dynavolt is one of the largest battery manufacturers globally and a market leader in EV car and motorcycle batteries, with a market capitalisation of more than 10 billion CNY

•    Dynavolt to subscribe for 10,000,000 MTC shares at a price of $0.30 per share to raise $3,000,000 with 6 months’ escrow, subject to regulatory approval for which MTC will be seeking shareholder approval for the future issue of shares to Dynavolt

•    MTC to facilitate Dynavolt share accumulation strategy by introducing third party shareholders (and advisors) for the acquisition of up to a further 5,000,000 MTC shares through on-market purchases

•    If Dynavolt increases its share ownership to >12.5% Dynavolt will earn:

o    to a right to participate in placements for 12 months to maintain ownership position
o    a right to match any project-level investment by a third party within 12 months up to 10% project-level interest

•    If Dynavolt increases its share ownership to >15% Dynavolt will earn a Board seat

•    MTC and Dynavolt to work in good faith to negotiate a project-level equity investment at its projects as part of a larger strategy to develop lithium carbonate/hydroxide beneficiation facility in Quebec underpinned by spodumene concentrate feed from MTC projects

•    MTC has also completed a heavily oversubscribed placement to sophisticated and institutional investors of 5,933,333 shares at $0.30 per share to raise a further $1.8 million, which will be issued using the existing placement capacity under ASX Listing Rule 7.1

•    Dynavolt deal is in addition to the $1.8m deal previously announced with Wuxi Baichuan Chemical Industry Co Ltd

•    Strategic funding deal allows MTC accelerate both the Cancet and Adina Lithium Projects

Commenting on the strategic placement, Executive Chairman of MetalsTech, Mr Russell Moran stated:

“Dynavolt is a global leader in the lithium-ion battery space, having been the battery supplier of choice for market leaders including BMW, Ducati, Suzuki and Kawasaki. They recently invested more than 3 billion CNY in building a high-end lithium battery division and we are excited at the opportunity of working closely with them as we seek to position ourselves as a valuable source of raw and refined lithium materials.

The full announcement can be viewed by CLICKING HERE


Trading Halt

The full announcement can be found by CLICKING HERE


AGM Results

The full ASX announcement can be found by CLICKING HERE.


Acquisition of High Grade Rusty Lake Cobalt-Silver Mine

iCobalt Secures Option to Acquire High Grade Cobalt-Silver Mine

Lithium and cobalt developer MetalsTech Limited (ASX:MTC) is pleased to announce that the Company’s wholly owned subsidiary iCobalt Limited, which it intends to separately list on the ASX in Q1 2018 (iCobalt), has signed a binding option agreement to acquire 100% of the Rusty Lake High Grade Cobalt-Silver Mine located near the Gowganda Township in Ontario, Canada.

Highlights:

  • Option to acquire 100% interest in 52 mining claims for 816 hectares including the historical silver and cobalt producing Rusty Lake Mine which operated between 1910-1913, 1936-1938 and 1964-1966
  • 540 hectares of the project area covers the Nipissing Diabase which is the target geological structure for high grade cobalt, silver and nickel within the area
  • Excellent infrastructure surrounding the project with historical mining activity and located 15km south of the town of Gowganda, Ontario with all-weather road access
  • Recent surface sampling at the Rusty Lake Mine yielded the following assays:
  • 38% Co, 85.7g/t, Ag, 2.08% Ni (stockpile off main mine shaft) – sample Q297453
  • 08% Co, 3540g/t Ag, 8.64% Ni (stockpile off main mine shaft) – sample Q297454
  • 26% Co, 478g/t Ag, 1.31% Ni (stockpile off main mine shaft) – sample Q297455
  • 04% Co, 38.9g/t Ag, 1.6% Ni (stockpile off main mine shaft) – sample Q297456
  • 85% Co, >10,000g/t Ag, 2.97% Ni (angular boulder) – sample Q297458
  • 92% Co, >10,000g/t Ag, 3.93% Ni (angular boulder) – sample Q297457
  • 33% Co, 69.1g/t Ag, 4.79% Ni (stockpile grab coarse) – sample Q297459
  • 8% Co, 34.8g/t Ag, 3.93% Ni (stockpile grab coarse) – sample Q297460
  • 08% Co, 19.4g/t Ag, 0.44% Ni (angular boulder) – sample Q297451
  • 65% Co, 44.4g/t Ag, 0.48% Ni (angular boulder) – sample Q297452

o  1.47% Co, 30.9g/t Ag, 3.52% Ni (NE trench) – sample Q297465

  • AMC Consultants conducting final stages of technical due diligence
  • Attractive share consideration weighted acquisition structure
  • Alto Capital appointed Lead Manager to the iCobalt spinout with MetalsTech shareholders to receive a Priority Offer as well as exposure to a potential in-specie distribution of iCobalt shares

The full ASX announcement can be found by CLICKING HERE


Appendix 3B (Escrow Release)

The full ASX announcement can be found by CLICKING HERE


Response to ASX Price Query

The full announcement can be found by CLICKING HERE


Trading Halt

The full announcement can be found by CLICKING HERE


Assays Confirm High Grade Intersections at Cancet

18m @ 3.71% Li2O and 301 ppm Ta2O5 from 8m Depth at Cancet

Cobalt and lithium developer MetalsTech Limited (ASX:MTC) is pleased to announce exceptional drill intersection assays at the Company’s 100%-owned Cancet Lithium Project in Quebec, Canada.

Highlights:

  • Exceptional near surface drill assay results from the first batch of drill core assayed which comprised of two prioritised drill holes:
    • MTC17-015 assayed 18.00m @ 3.71% Li2O and 301 ppm Ta2O5 from 8m depthincluding:
      • 5.00m @ 4.10% Li2O and 114 ppm Ta2O5 from 12m; and
      • 8.00m @ 3.59% Li2O and 489 ppm Ta2O5 from 18m
    • MTC17-002 assayed 5.08m @ 2.67% Li2O and 323 ppm Ta2O5 from 9m depth;including:
      • 2.08m @ 4.78% Li2O and 614 ppm Ta2O5 from 12m
    • Assays from second batch of drill holes expected over the coming weeks
    • Ore profiling and initial metallurgical test work now completed by NAGROM and Primero – report with complete analytical results expected shortly
    • Drilling continues to extend strike of the mineralised pegmatite

Commenting on recent results, Executive Director Mr Gino D’Anna stated:

These results confirm our thesis that Cancet has the potential to host an exceptionally high grade lithium deposit very close to surface. It is located only a few kilometres from low cost hydro-power and an existing provincial highway, so if we continue to extend strike and grow tonnes, we will be well positioned to deliver a world class low cost mine.

The fulll announcement can be found by CLICKING HERE